Nov. 2 (Bloomberg) -- Ethanol production in the U.S. rose 0.8 percent to 916,000 barrels a day in the week ended Oct. 28, the highest level in nine months, the Energy Department said.

Output increased for three straight weeks for the first time since Aug. 5. Production in the week ended Jan. 21 was 922,000 barrels a day. Stockpiles declined 0.5 percent to 17.2 million barrels, the department said.

Production of conventional gasoline blended with ethanol rose 1.3 percent to 5.22 million barrels a day. Refiners receive a 45-cent tax credit for every gallon of ethanol blended into the motor fuel.

Denatured ethanol for November delivery rose 2.7 cents, or 0.1 percent, to $2.787 a gallon at 10:46 a.m. New York time on the Chicago Board of Trade. Ethanol futures have gained 17 percent this year.

--Editors: Charlotte Porter, Richard Stubbe

To contact the reporter on this story: Justin Doom in New York at jdoom1@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net